I Saw This Coming
I realize that I’m not the brightest bulb in the lamp. There are a lot of people with a much keener intellect than I. But when the Gramm-Leach-Bliley Act (GLB) was passed in 1999, it was as obvious as an ass on an elephant (Thanks, Dave) that the United States was on the path to trouble. The people against the bills in Congress explained what would happen if and when it became law.
From Wikipedia, an explanation of Gramm–Leach–Bliley Act
The Gramm–Leach–Bliley Act (GLB), also known as the Financial Services Modernization Act of 1999, (Pub.L. 106-102, 113 Stat.1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. The legislation was signed into law by President Bill Clinton.
The outcome we have today does not fall under The Law of Unintended Consequences. The people against GLB knew our current economic condition was on the horizon.
This is exactly why the Glass-Steagall Act needs to be reinstated: without a separation of Investment Banks and Commercial Banks, what we end up getting is taxpayer-guaranteed gambling. Instead of encouraging prudence and savings by insuring deposits in commercial banks, the FDIC is now being turned into a vehicle for socializing speculative losses.
Nigh unto 40 years ago, an old Navy Master Chief said to the assembled troops, “Cryin’ Christ on a crutch, men, we’s livin’ in a den of thieves.” He was referring to some thefts that occurred in the barracks.
Well, that is what is going on now with BofA. It’ll be legalized theft from the taxpayer via the FDIC.